I concluded last year with two in-depth articles about Nvidia. I thought when I was writing “What’s next for Nvidia stock in 2026” that there wouldn’t be news about Nvidia for a while.
Then, Nvidia completed its investment in Intel, and I wrote “Nvidia makes good on a key promise of 2025,” a detailed analysis of that collaboration.
At that point I thought that January would be quiet, but I was very wrong.
Nvidia decided to go all out with its announcements during CES. It almost seems that the company may have nothing to reveal during its own GTC conference in March.
The company has gone so far as to unveil its next generation of GPUs – Vera Rubin, which is something it usually saves for GTC.
Why the rush? Is the bubble about to burst, or is AMD’s Helios rack system, which is also set to launch this year, putting pressure on Nvidia?
I think it’s AMD’s Helios and Google’s TPUs that have made Nvidia shift gears, and it shows.
Nvidia CEO Jensen Huang believes "the ChatGPT moment for physical AI is here."Shutterstock-Glen Photo” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Nvidia CEO Jensen Huang believes that “the ChatGPT moment for physical AI is here.”Shutterstock-Glen Photo
Bank of America analyst Vivek Arya and his team attended Nvidia’s (NVDA) CES 2026 keynote and financial analyst Q&A session on January 5. After the event, they updated their opinion on NVDA stock in a research note shared with TheStreet.
The team said that Nvidia CEO Jensen Huang noted that the “very high” demand for AI computers continues, and announced the new Vera Rubin AI platform.
AI scaling remains on track, with five times token generation and 10 times cost reduction per year.
Six new AI chips have been announced for the Vera Rubin platform, planned for the second half of 2026.
The company unveiled a new platform for storing context memory at the pod level.
Nvidia continues to lead every single major LLM today.
AI will be funded by the modernization of AI and the shift of R&D methods.
The Groq/SRAM deal can be beneficial for extremely low latency workloads.
AI is expanding beyond LLMs, into physical AI.
China’s H200 demand is there, but still waiting for licenses.
An informed and careful reader will notice that the team of analysts must have ignored the fact that Google Gemini 3 was trained and is working on Google’s own TPUs, as reported by CNBC.
The team said Nvidia’s continued dominance in the AI computing, networking system and ecosystem is trading at about a 19 multiple price-to-earnings ratio, or in line with the broader S&P 500 index, despite superior EPS CAGR, greater than 35% and above 40% free cash flow.
Arya reiterated a buy rating and a target price of $275, based on 28 times its estimate for the price-to-earnings ratio excluding cash for calendar year 2027, which is within Nvidia’s historical forward-year price-to-earnings range of 25 to 56.
Weakness in the consumer-driven gaming market
Competition with leading public firms
Greater than expected impact from restrictions on computer shipments to China
Sudden and unpredictable sales in new enterprise, data center, and cars markets
Potential for reduction in capital gains
Enhanced government scrutiny of Nvidia’s dominant market position in AI chips
Nvidia unveiled its next-generation AI Rubin platform, consisting of six new chips.
The Rubin platform uses extreme co-design in its six chips: the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9 SuperNIC, BlueField-4 data processing unit (DPU), and Spectrum-6 Ethernet Switch.
“Rubin arrives at exactly the right moment, as the demand for AI computing for both training and inference is going through the roof. With our annual cadence of delivering a new generation of AI supercomputers – and extreme code design in six new chips – Rubin takes a giant leap towards the next frontier of AI,” Huang stated.
Related: Bank of America resets Micron’s stock price target, rating
The company also launched its Alpamayo family of open AI models, simulation tools, and datasets, designed for reasoning-based autonomous vehicle (AV) development. According to the company, the Alpamayo family introduces vision language action models based on chain of thought and reasoning that bring human thinking to AV decision-making.
Huang stated: “The ChatGPT moment for physical AI is here – when machines start to understand, reason and act in the real world. Robotaxis are among the first to benefit. Alpamayo brings reasoning to autonomous vehicles, allowing them to think in rare scenarios, drive safely in complex environments and explain their driving decisions – it is the foundation for safe and scalable autonomy.”
More Nvidia:
Siemens and Nvidia announced an expansion of their partnership for the development of industrial and physical AI solutions.
Roland Busch, president and CEO of Siemens AG, stated: “Together, we are building the industrial AI operating system — redefining how the physical world is designed, built and managed — to scale AI and create real-world impact. By combining Nvidia’s leadership in accelerated computing and AI platforms with Siemens’ leading hardware, software, industrial AI and data, we adapt the most comprehensive empowerment products to digital customers.real-time production and accelerate technologies from AI chips to factories.”
The companies plan to build the world’s first fully AI-driven adaptive manufacturing sites. The first, according to the plan, is the Siemens Electronics Factory in Erlangen, Germany, in 2026.
Related: Veteran analyst has a clear message on Intel stock
This story was originally published by TheStreet on January 7, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
